Capitalism and Progress for Business - Essay Example

?Capitalism Is a Force of Progress for Business and Society Table of Contents Table of Contents 2 Introduction 3 Evaluation of Capitalism as a Force of Progress for Business and Society 4 Discussion and Analysis 8 Conclusion 9 References 10 Introduction Capitalism is considered to be a monetary investment with an expectation of monetary returns. Herein, it has been determined that accelerated profit margins are usually associated with the distanced trading ventures with a considerable risk. Capitalism is recognised to be an economic system where the private sector takes the entire control over trade, means of production and industry. According to Potter (2008), capitalist system in the recent scenario has encouraged the businesses to become a major cause for economic, environmental and social complications. On further analysis of his views it is ascertained that modern-day companies are developing and prospering at the cost of societal degradation. The essay intends to discuss whether capitalism is acting as a force or not in the progression of business and society. Furthermore, the essay will reflect the views and theories provided by various authors regarding capitalism and its implications upon society and business. Evaluation of Capitalism as a Force of Progress for Business and Society According to Fulcher (2004), in traditional form of business the merchants used to invest money in order to get better returns in the forms of goods and monetary valuations. In the similar context, the capitalist production in the present scenario mainly depends upon the exploitation of the wage labour. In the capitalist society, labour is considered to be vital as they are engaged in more work activities that facilitate to increase the production and ultimately the consumption. Furthermore, the author’s view reflects that in the market, production along with consumption frame the basis of economic activities. As ascertained by him, market fluctuations give rise to the basis of hypothetical form of capitalism that does not result in any productivity. In this regard, this mechanism of capitalism theory frames the key operational purview of the capitalist economy. According to Cammack (1998), with the advent of capitalism, the liberal democracy has been diminished. Liberal democracy represents a governmental form that operates following the principles that are implemented to protect the rights of the minorities. The domination of capitalism in the economic sector worldwide has acted as a key force to overpower liberal democracies. In recent scenario, in the midst of capitalist society, the minor section in the society is being exploited with a motive to earn more profit margins. Furthermore, inequality within the capitalist society has taken a greater height as mentioned by Cammack (2009) & Guimaraes (2012). The authors highlighted the viewpoint of Organisation for Economic Cooperation and Development (OECD) that expresses views related to globalisation. In accordance with this viewpoint, globalisation has been considered as the ‘win-win’ process by the economists but public opinions regarding the concerning view was quite hostile. The trend of inequality and the above mentioned perspective relate with the capitalist society wherein most of the firms operate within competitive world economy with profit motive. In relation to capitalism in the modern era, the corporate sector has taken over a majority of the market scenario. In this regard, Crouch (2011) explores that in the midst of liberal society, capitalism is entering by the mode of two vibrant thoughts within the societal context. The group that fears expansion of the government sector within the society prepares itself to tolerate the exploitation of private sector. Whereas, the other group is ready to encourage the growth of governmental sector in order to reduce the expansion of corporate sector within the society. Furthermore, in keeping with the notion whether capitalism is facilitating the business and societal development or not, Dicken (2010) expresses the global shift and its implications over the society. In accordance with today’s global economic shift, the market and the trade scenario have vastly changed. The Global shifts have shown a considerable amount of growth in the economy that has been mainly contributed by capitalism. As explored by Fulcher (2004) & Gamble (2009), capitalism faces the challenges pertaining to the economic crisis as well. They mainly focused on the fact that in the society wherein there is dominance of capitalism, there is no requirement to search for any other alternatives. The authors state that in order to bring about reforms within the society, it is necessary to indulge changes in capitalism. On further evaluation of capitalism according to the view of Harvey (2007), it has been observed that many private corporations have gained profits from the technologies such as AIDS drugs that have helped the society to a certain extent. Moreover, the private corporations also earn their profits share form the calamities such as war, famine along with environmental disaster. In keeping with this scenario, the corporate sector has provided power to the societal economy. The sectors such as pharmaceutical, retailing and media among others have been progressive under the management of capitalist society. Hurrell (2007) focuses mainly on economic globalisation within the unequal society. Economic globalisation is associated with capitalism that has resulted in the inequality within the societal context. Globalisation has changed the entire scenario of the modern society. International trade and capitalism have concurrently affected the trade scenario to a greater extent. Globalisation has been immensely responsible for the growth of corporate sector within the society that has resulted in the dominancy of capitalist society. Kiely (2008) has also directed his focus on the similar area. According to his view, the advent of globalisation has contributed to the overall industrial development. Furthermore, it has been expressed by the author that in the year 1970, there had been an economic growth worldwide. The emergence of this economic growth was primarily due to the global shift that had resulted in accelerated industrial production. This reflects that capitalism has assisted the economy to rise to a greater standard but at the cost of labour exploitation with a motive of profit earning. In the context of capitalism, Maddison (2002) & Coe & et.al. (2007) have focused on the new market economy. This particular economy represents insufficiency and unfair distribution of the resources. Correspondingly, Mcnally (2010) reflects about neoliberalism that has facilitated economic growth within the capitalist society. Potter (2008) & Wade (2009) highlight the implication of globalisation upon the society. In their view, with the emergence of globalisation within the capitalist society, it has given rise to the convergence of corporates, divergence of cultural aspects and development of industries. Discussion and Analysis In essence with the above views of different authors and various articles, it has been ascertained that capitalism to certain extent has provided the economy a greater height at the cost of labour exploitation. The views of various authors have primarily reflected about the association of globalisation with the capitalist society. Moreover, it has been determined that entrance of the corporate sector within the society has increased with the aid of globalisation. In the era in which international trade and commerce have proliferated with the diversified cultures, globalisation has accelerated the demand of the private firms within the modern day society. Furthermore, capitalism within the society has definitely forced industrial development but on the expense of societal benefit. The dominancy of the capitalist society has in many respects caused societal harm. The growth of the private sector has increased the level of stress amidst the society. Conversely, capitalism as a part of modern society has also provided various job prospects for the society and has fostered industrial development and economic growth worldwide. It has also been ascertained that the private corporates generally earn their profits by not entirely focusing on the greater benefits of the society at large. For instance, it has been observed in the articles that corporates earn their profit during the occurrence of any calamities. Thus, it remains a vague image that whether capitalism forces industrial and societal development or not. Conclusion From the overall discussion, the thoughts of various authors pertaining to capitalism have been determined. The authors have highlighted their views that capitalism has certainly been a decisive force in global society that has brought about a sea of change in the global economic purview as well. It is observed that the advent of globalisation has brought about an immense change within the society. The societal development and the economic growth worldwide are largely due to the influence of capitalism. However, it has been recognised that capitalism does not always replicate a rosy picture for commoners in the society as there has been a number of instances wherein the urge for earning greater profits by the corporates has resulted in causing harm to the society at large. Moreover, in context of capitalism, it can be highlighted that for sustainability of the corporates within the new market economy there is a need to incorporate governmental rules and regulations. In accordance with capitalism, a despicable fact that has emerged is that exploitation of labourers for earning profit certainly does not bode well for greater cause of society at large. Contextually, it can be affirmed that an increase of knowledge within the society is more necessary rather than labour supply. The study reflected that in the modern scenario the execution of capitalism has created economic, political and environmental problems. Therefore, it becomes necessary for the capitalist society to maintain a balance between the societal development and business. Capitalism thus can certainly be regarded as a force of progress for business but often at the cost of the societal deprivation. References Cammack, P., 1998. Globalization and the Death of Liberal Democracy. European Review, Vol. 6, Iss. 2, pp. 249 – 263. Cammack, P., 2009. Why Are Some People Better Off Than Others? Chapter 13, pp. 295-319. Coe, N. M. & et. al., 2007. Uneven Development. Chapter 3, pp. 59-86. Crouch, C., 2011. The Corporate Takeover Of The Market. Chapter 3, pp. 48-70. Dicken, P., 2010. Global Shift: Geographies of the Global Economy. Chapter 2, pp. 13-48. Fulcher, J., 2004. Capitalism: A Very Short Introduction. Chapter 1, pp. 1-18. Fulcher, J., 2004. Capitalism: A Very Short Introduction. Chapter 6, pp. 104-127. Gamble, P., 2009. Crises of Capitalism. Chapter 2, pp. 36-65. Guimaraes, J., 2012. The High Cost of Inequality in Rich Countries. International Institute Of Social Studies, pp. 1-11. Harvey, D., 2007. Freedom’s Just Another Word. Chapter 1, pp. 5-38. Hurrell, A., 2007. Economic Globalisation in an Unequal World. Chapter 8, pp. 194-315. Kiely, R., 2008. Global Shift: Industrialization and Development. Chapter 4.1, pp. 183-186. Maddison, A., 2002. The West and the Rest in the International Economic Order. Trade and Development, No. 235, pp. 43-52. Mcnally, D., 2010. The Day The Music Died: Three Decades Of Neoliberalism. Global Slump, pp. 25-60. Potter, R. B., 2008. Global Convergence, Divergence and Development. The Companion to Developmental Studies, pp. 192-195. Wade, R. H., 2004. Is Globalisation Reducing Poverty And Inequality? World Development, pp. 410-425. Read More